BNC seeks $6 million for Trojan smelter

Bindura Nickel Corporation says it will soon approach local banks to negotiate for $6 mln funding facilities it requires to complete the reconstruction of its Trojan Nickel smelter.

Managing Director Batirai Manhando said the company is expected to secure funding facilities by the end of this month.

Work on the smelter was originally scheduled for completion in May last year, but missed the deadline, as it had been stagnant for six months, largely due to cash flow constraints, Manhando told The Business Weekly on the sidelines of the African Mining Indaba in Cape Town on Tuesday.

When fully operational, the smelter will have capacity to produce 160 000 tonnes of matte per month.

BNC reported an 83 percent leap in after tax profit to $2,2 million in the first half of the financial year ended September 30 driven by growth in other income.

The company's revenue grew by 7 percent to $24,1 million while cost of sales jumped 13 percent to $16 million. Other income for the period doubled to $1,1 million on account of receipts from Government's export incentive. - Businessweekly